The joint venture between Ashok Leyland and Nissan in light commercial vehicles is not in a hurry for its own greenfield production plant, a senior official of Ashok Leyland said today.
Ashok Leyland executive director LCV Nitin Seth said that earlier there was delay in land acquisition, but in the high interest rate scenario and present commercial vehicle market situation, the company did not have a firm commercial production time line for the greenfield plant.
Seth, who was here to introduce LCV Dost and multi-utility vehicle Stile in West Bengal, said that production was not hampered as it was being carried out at capacities of both the promoters units and the company was not losing out the market in the absence of the new plant of the JV.
The new greenfield plant had acquired 280 acres near Chennai and obtained all clearances for construction, but was waiting for a more conducive timing for constructing it.
Once the new plant under the JV is completed, the production lines of Dost from Ashok Leyland and Stile from Nissan would move to the new facility, Seth said.
He said the association of Ashok Leyland and Nissan was under three entities — Ashok Leyland Nissan Vehicles Ltd (50:50), Ashok Leyland Nissan Powertrain (51:49) and Ashok Leyland Nissan Technology in which Nissan held 51 per cent.
“The JVs have so far invested Rs 1,250 crore out of total Rs 2,500 crore proposed in phases. The new proposed plant will have a total capacity of 1.5 lakh units,” Seth said.
The partnership would introduce 27-seater buses and trucks below eight tonne capacity, he said.